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The consulting industry is fiercely competitive and nets between $130B and $150B a year. In fact, professional consultants earn more money than many lawyers, doctors and other professionals. 

Offering free consultations is a common way for a software consultant to seize new accounts. But is there a red flag where a consultant may be giving away too many services for free? The worst scenario for a professional software consultant is to offer free services to the client and then never hear from them again once they no longer need their help. 

Although having the best intentions, many people will waste a consultant's time (i.e., client ignores or rejects any suggested approaches or solutions given by the consultant and seek the services of someone who will do it cheaper or will attempt to do it themselves). Small business owners especially can be challenging to work with. Some clients have a tendency to jump into projects before having adequate resources to finish what they have started, decide to go in a different direction midstream, while others simply don't want to spend any money when getting professional services. It's hard to believe, but some clients actually expect to receive free services for life. To counteract this notion, a software consultant can draw the line by offering free services within a promotional time frame and then begin charging a fee for services rendered after that time.

A good indicator of what a client's true intentions are is to monitor their activity within a specified period to see if their consultation activity bears fruit in the form of a contract. One big red flag is non-commitment on the part of the client. If they seem indecisive or vague about what they want it may be time to move on. Although there are times when a free consultation results in a paying client years later, who can wait that long? 

Less of Your Time is Wasted When You're Upfront


After being burned, some professional software consultants no longer give free consulting. They find that clients are much more willing to follow their advice when they have paid something. In order to close an account, a happy medium can be agreed upon by both parties involved as a way to build a long term relationship with highly qualified prospects. 

A software consultant's work, knowledge, skills and time are valuable. They can offer a potential client general solutions instead of addressing specific challenges. If a specific topic of discussion, troubleshooting session or other issue needs to be addressed, the consultant can inform the client of any upfront costs to receive a particular service if they need further assistance. Really, a free software consultation (if one is given) should be presented in a very similar way someone would hand out samples of a product at a grocery store. A professional consultant ideally wants clients to see how they can benefit using their services on a trial basis with a pitch leading to more extensive services which would only be available if they sign a contract with their firm. 

 

 Red Flags

I’ve been a technical recruiter for several years, let’s just say a long time.  I’ll never forget how my first deal went bad and the lesson I learned from that experience.  I was new to recruiting but had been a very good sales person in my previous position. I was about to place my first contractor on an assignment.  I thought everything was fine.  I nurtured and guided my candidate through the interview process with constant communication throughout.  The candidate was very responsive throughout the process.  From my initial contact with him, to the phone interview all went well and now he was completing his onsite interview with the hiring manager. 

Shortly thereafter, I received the call from the hiring manager that my candidate was the chosen one for the contract position, I was thrilled.  All my hard work had paid off.  I was going to be a success at this new game!  The entire office was thrilled for me, including my co-workers and my bosses.  I made a good win-win deal.  It was good pay for my candidate and a good margin for my recruiting firm. Everyone was happy. 

I left a voicemail message for my candidate so I could deliver the good news. He had agreed to call me immediately after the interview so I could get his assessment of how well it went.  Although, I heard from the hiring manager, there was no word from him.  While waiting for his call back, I received a call from a Mercedes dealership to verify his employment for a car he was trying to lease. Technically he wasn’t working for us as he had not signed the contract yet…. nor, had he discussed this topic with me.   I told the Mercedes office that I would get back to them.  Still not having heard back from the candidate, I left him another message and mentioned the call I just received.  Eventually he called back.  He wanted more money. 

I told him that would be impossible as he and I had previously agreed on his hourly rate and it was fine with him.  I asked him what had changed since that agreement.  He said he made had made much more money in doing the same thing when he lived in California.  I reminded him this is a less costly marketplace than where he was living in California.  I told him if he signed the deal I would be able to call the car dealership back and confirm that he was employed with us.  He agreed to sign the deal. 

The field of information technology is in many ways perfectly suited for entrepreneurship. Many highly successful enterprises started with a lone IT professional venturing out on their own and starting up their own company. If you have computer science skills and want to explore alternative options outside the corporate arena you should seriously consider going into business for yourself. Businesses may be more willing to hire you as a contractor rather than as a full-time worker. There are certain IT jobs that are perfect for individuals who want to be self-employed, they include:

• Working as a Consultant
Large IT departments are not as necessary for corporations as they were at the start of the internet era; this is partly due to the trend towards cloud computing. Consultants are often brought in to handle the need for tech expertise when companies downsize or eliminate their IT departments. A consultant may work for several different clients at the same time, be on call for various disciplines or be commissioned for specific projects.

• Web Entrepreneurship
The ease of building a website and the fact that web hosting is relatively affordable means that it does not take a lot of know-how to start your own online empire. You can sell products or services, or start your own online community. Another option is to start selling goods via auction sites or on sites that sell advertising space. You will need an understanding of marketing and of search engine optimization so that you can draw visitors to your site.

• Programming Apps for Mobile Devices
The future of the Internet is in mobile devices. Statistics show that much of the world will be using mobile devices and smart phones to handle their surfing needs in the near future. If you have the skills to program the apps used on these devices, you could be among those riding the wave of this trend.

It is not impossible to start an Information Technology company with very little startup capital. Getting it off the ground in terms of online visibility will require focus to detail, knowing your target market, a consistent campaign to build a client list and a solid reputation.

Another blanket article about the pros and cons of Direct to Consumer (D2C) isn’t needed, I know. By now, we all know the rules for how this model enters a market: its disruption fights any given sector’s established sales model, a fuzzy compromise is temporarily met, and the lean innovator always wins out in the end.

That’s exactly how it played out in the music industry when Apple and record companies created a digital storefront in iTunes to usher music sales into the online era. What now appears to have been a stopgap compromise, iTunes was the standard model for 5-6 years until consumers realized there was no point in purchasing and owning digital media when internet speeds increased and they could listen to it for free through a music streaming service.  In 2013, streaming models are the new music consumption standard. Netflix is nearly parallel in the film and TV world, though they’ve done a better job keeping it all under one roof. Apple mastered retail sales so well that the majority of Apple products, when bought in-person, are bought at an Apple store. That’s even more impressive when you consider how few Apple stores there are in the U.S. (253) compared to big box electronics stores that sell Apple products like Best Buy (1,100) Yet while some industries have implemented a D2C approach to great success, others haven’t even dipped a toe in the D2C pool, most notably the auto industry.

What got me thinking about this topic is the recent flurry of attention Tesla Motors has received for its D2C model. It all came to a head at the beginning of July when a petition on whitehouse.gov to allow Tesla to sell directly to consumers in all 50 states reached the 100,000 signatures required for administration comment. As you might imagine, many powerful car dealership owners armed with lobbyists have made a big stink about Elon Musk, Tesla’s CEO and Product Architect, choosing to sidestep the traditional supply chain and instead opting to sell directly to their customers through their website. These dealership owners say that they’re against the idea because they want to protect consumers, but the real motive is that they want to defend their right to exist (and who wouldn’t?). They essentially have a monopoly at their position in the sales process, and they want to keep it that way. More frightening for the dealerships is the possibility that once Tesla starts selling directly to consumers, so will the big three automakers, and they fear that would be the end of the road for their business. Interestingly enough, the big three flirted with the idea of D2C in the early 90’s before they were met with fierce backlash from dealerships. I’m sure the dealership community has no interest in mounting a fight like that again. 

To say that the laws preventing Tesla from selling online are peripherally relevant would be a compliment. By and large, the laws the dealerships point to fall under the umbrella of “Franchise Laws” that were put in place at the dawn of car sales to protect franchisees against manufacturers opening their own stores and undercutting the franchise that had invested so much to sell the manufacturer’s cars.  There’s certainly a need for those laws to exist, because no owner of a dealership selling Jeeps wants Chrysler to open their own dealership next door and sell them for substantially less. However, because Tesla is independently owned and isn’t currently selling their cars through any third party dealership, this law doesn’t really apply to them. Until their cars are sold through independent dealerships, they’re incapable of undercutting anyone by implementing D2C structure.

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the hartmann software group advantage
A successful career as a software developer or other IT professional requires a solid understanding of software development processes, design patterns, enterprise application architectures, web services, security, networking and much more. The progression from novice to expert can be a daunting endeavor; this is especially true when traversing the learning curve without expert guidance. A common experience is that too much time and money is wasted on a career plan or application due to misinformation.

The Hartmann Software Group understands these issues and addresses them and others during any training engagement. Although no IT educational institution can guarantee career or application development success, HSG can get you closer to your goals at a far faster rate than self paced learning and, arguably, than the competition. Here are the reasons why we are so successful at teaching:

  • Learn from the experts.
    1. We have provided software development and other IT related training to many major corporations since 2002.
    2. Our educators have years of consulting and training experience; moreover, we require each trainer to have cross-discipline expertise i.e. be Java and .NET experts so that you get a broad understanding of how industry wide experts work and think.
  • Discover tips and tricks about programming
  • Get your questions answered by easy to follow, organized experts
  • Get up to speed with vital programming tools
  • Save on travel expenses by learning right from your desk or home office. Enroll in an online instructor led class. Nearly all of our classes are offered in this way.
  • Prepare to hit the ground running for a new job or a new position
  • See the big picture and have the instructor fill in the gaps
  • We teach with sophisticated learning tools and provide excellent supporting course material
  • Books and course material are provided in advance
  • Get a book of your choice from the HSG Store as a gift from us when you register for a class
  • Gain a lot of practical skills in a short amount of time
  • We teach what we know…software
  • We care…
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Companies are beginning to realize that talent and skills developed within the United States are exceedingly more important for the growth of an organization than the alternative: outsourcing. Considerations include: security, piracy, cultural differences, productivity, maintainability and time to market delays.
In the past, the reason for outsourcing centered on cost savings, lack of resources at home and the need to keep up with market trends. These considerations are proving to be of little merit as many organizations have, consequently, experienced productivity declines, are now finding considerable talent within their immediate location and have realized a need to gain more control over product development.
As strong advocates of Agile/Scrum development, HSG whole heartedly embraces this new entrepreneurial spirit because we know it works and because we believe our country's future weighs in the balance.

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